What are the Steps in the Accounting Cycle?

What is the Accounting Cycle?

The accounting cycle is series of steps used to collect and process financial information before they can be finally communicated to the statement users. Accountants call it a cycle since they repeat the steps every accounting period. The accounting period is usually a twelve- month period which may end on December 31 in which case it is called a calendar accounting period or it may end on any other month in case it is called a fiscalaccounting period.